New-York tribune. [volume] (New York [N.Y.]) 1866-1924, 1887-03-18
RlDICAL CUT IN OIL CHARGES.

LOWER STORAGE AND sIIrINKAGE INTERCHANGEABLE
AGREEMENT WITH THE PRODUCERS.
OIL men who met uptown last night In cheerihi
frame OF mind The lad spread OF the sncees'Iui
result OF conference which had been going "n '''
three day, between committee OF producers represent
Ing nearly onehalt OF the total output OF crude petrolc
UNI and representatives OF the National Transit Com
many which handles and stores tho product The meet
ing hal reached an agreement by which the charges
against tho producer we're reduced over third
the conceded by oil 20 have been the
most important held in tho history OF the trade 1nr
TRIBUNE yc terday outlined the extent TO which the
agreement had made progress and the nnal differences
that remained 10 be settled These chiefly "a to the
rate charged crude petroleum In tho custody OF
the pipe lines Two sessions were held yesterday nj inc
Fifth Avenue Hotel The morning session dld not COM
plete the work aud rumors Of probable disruption
reached Wall street and helped 10 cause sharp reaction
in prices But ut the afternoon session an agree
ment was made by which tho National Transit
Company reduce its storage charges 3'a per cent
and It's charges for the shrnkaec OF oil ~ 10 per cent
The old shrnkagc charge was cents per 1000 barrels
II will hereafter be only cents Tho present rate OF
storage /. 40 cents per 900 barrels It will DO lowered
oil graduated scale when tho market price Is ~ per
barrel or under the will be - cents per 1000
barrels when the prico over 81 ana under ~ % inc
rate will be 30 and when tho price II ~ 90 or
upward II will be 40 cents. The graduated scale wns
adopted on the theory the market rises materially
the increased profits ~ the producer shall DO
shared with the Pipe lines through tho Increased
rate for storage Many minor regulations affecting The
also agreed 10 ANA thcy are IN every CASE
favorable Ia tho producer - -
Tho National Transit Company viii Today ISSUE an
official notice the reduction IN storage charges Ihc
coufeIruce agreed that the reduction should go lho
effect not later than May - Tho representatives oi the
changes early practicable but asked fur
time to make the extensive changes required IN hoir
nii,ro schedules by the agreement II
thcse schedules can be put In good shape NJ
an earlier date the company VIII not s'h W..
UPON iecnpicale, In order 10 postpone the time OF The
reductions NelinOrmed oil mou said last night that
was likely that benefits OF the agreement would DO
realized IN little more than thirty days
There was an Interesting discussion last night among
oil producers operators Ia tho effect OF The chang
t be made. general ScntiDcnt may nc summarized
i'm the remarks of tho largest oil companies OF
Pcnnsy lvaiIia:
The reduction rates will be Eroat belp 70 uo
ami will br made rrespectveiof The acOn OF uo
r,nnsyvania LcgislsiuTe tho Bnngsey bh WHOM pro-
poses regulate The trade ana enforce rclu'uohs ~
charges by largo proportion OF tho on ioVo gonhu
IA outside OF limits Of Ponnsy AHA the eito
provisions ball cannot reach H. There ~ niue donI
n, ms, tho couri. n II becomes law and
thenn tho producing regions would have long and OF.
pensve their hands The clam Is made that tho
proposed unconstitutional n, npas Tho obisatlOn
OF ,vufA,, compromise reached bv the pipe ihrs and
tho Whlo hot granting everything That wo
Is as gsnoous Que as could DO expected IN lusio9
ought all tho support ack OF the Blhesoy bl
believe Tho majority Of Tho rdo opposed 10 The htoi
Of Legislative ehactmens whom TAR deal eau be mAno
Ia business basis.
pass the Ponnsy House OF Representatives. but
strong hopo entertained that will DO beaten In the
Senate Tho storage rates VIII reduce tho yearly
cost carrying oil rcm about 10 TO cents per BARREL